ACTIONGROUP ASSOCIATES Vs. BEML LIMITED

JUDGEMENT

(1.) BY this application under Section 11(6) of the Arbitration and Conciliation Act, 1996 ("the Act" for short), the applicant seeks reference of the disputes between the parties to an arbitrator. It is the case of the applicant that the applicant entered into an agreement dated 7.3.2008 for supply of ore with the respondents on certain terms and conditions. The said agreement contains following arbitration clause: -

(2.) THEREAFTER another agreement dated 17.3.2008 was entered into between the parties which also contained similar arbitration clause. The disputes arose between the applicant on one side and the respondents on the other side. By notice dated 3.5.2010, applicant called upon the respondents to pay an amount of Rs. 1,42,23,632/ -(Rupees one crore forty two lakhs twenty three thousand six hundred thirty two only) along with interest thereon at the rate of 15% per annum and also damages to the tune of Rs. 12,50,00,000/ -( Rupees twelve crores fifty lakhs only) for the loss of credibility and goodwill and mental agony and further amount of Rs. 15,00,00,000/ -(Rupees fifteen crores only) and also called upon them to appoint an arbitrator. According to the applicant an amount of Rs. 1,42,23,652/ -(Rupees one crore forty two lakhs twenty three thousand six hundred fifty two only) was due and payable by the respondents to the applicant in terms of the agreement dated 7.3.2008 and 17.3.2008 entered into between the parties. The respondents disputed the claim of the applicant. By reply dated 2.9.2010 respondent no.1 denied the claim made by the applicant. No reply was sent by respondent no.2.

(3.) REPLY has been filed on behalf of respondent no.1. It is the case of respondent no.1 as disclosed in the reply that in terms of two agreements dated 7.3.2008 and 17.3.2008 respondent no.1 has paid excess amount of Rs. 1,27,76,368/ -( Rupees one crore twenty seven lakhs seventy six thousand three hundred sixty eight only) to the applicant. According to respondent no.1 the material produced by the applicant establishes that an excess payment to the extent of above referred amount has been made by respondent no.1 to the applicant. The applicant has filed an affidavit in rejoinder dated 11.8.2011 disputing the claim made by respondent no.1 that excess payment has been made to the applicant.